Sam Allardyce expects Mohamed Diame's contract situation to be resolved and has denied talk of a dispute on his deal.

Last Updated: 24/01/13 8:06am

Mohamed Diame: Has been linked with Arsenal move

Reports surfaced on Tuesday suggesting the tough-tackling midfielder, who has been linked with an Arsenal move, was unhappy with West Ham for trying to renege on the alleged £3.5million release clause in his contract.

Diame, who arrived at Upton Park last summer, is yet to agree fresh terms with the Hammers as they strive to keep him at the club.

However, Allardyce believes the situation can be resolved and has denied talk of a dispute over his buyout clause.

Asked if a solution could be found over the midfielder, who was a substitute in Wednesday's 5-1 defeat at Arsenal, Allardyce told Sky Sports: "I would've thought so.

"I don't think the story today that the Mail put out is right. It's just disruptive agents as always."

Allardyce admits West Ham's own transfer ambitions this month have become more desperate following injuries to Winston Reid and Danny Potts in the defeat at Emirates Stadium, with the defenders making early exits with a groin injury and concussion respectively.

Potts' problem appeared particularly serious after he received lengthy treatment on the pitch at Emirates Stadium before being stretchered off and taken to hospital.

The manager said: "It really is difficult to secure the player that we're looking for. Price and quality has to go together for us.

"If the price is right and the player's not good enough we have to say no, and if the player's good enough but the price is too big we have to say no.

"It's an unfortunate situation that we find ourselves in. I'm not trying to put the owners under pressure here at all whatsoever, it's just a fact of life.

"We have to keep trying to find the defending side of it particularly because we took Winston Reid off with a groin today.

"We can stand an injury anywhere else on the pitch other than another defender, and now we've ended up with two injured; Reid with a groin and young Danny off with concussion.

"It gets even more desperate that we find a solution in the transfer market."